FREE TRADE ZONES & EXPORT PROCESSING ZONES

Kandla Free Trade Zone (KAFTZ), Kandla, Gujarat;

Santa Cruz Electronic Export Processing Zone (SEEPZ), S. Cruz,Maharashtra;

Cochin Export Processing Zone (CEPZ), Cochin, Kerala;

Falta Export Processing Zone (FEPZ), Falta,West Bengal;

Madras Export Processing Zone (MEPZ), Madras, Tamil Nadu;

Noida Export Processing Zone (NEPZ), Noida, Uttar Pradesh;

Visakhapatnam Export Processing Zone (VEPZ), Visakhapatnam, Andhra Pradesh.

While the Santa Cruz Electronics Export Processing Zone (SEEPZ) is meant exclusively for the exports of electronics and gems and jewellery, all other zones are multi-product zones. 100% foreign equity is welcome in EOUs and EPZs.

Recently, with a view to augmenting infrastructural facilities for export production, government has permitted the setting up of EPZs in the private and joint sectors including those by Non Resident Indians and foreign companies.

Export Policy

Exports are the major focus of India's trade policy and a thrust area is exports involving higher value additions. Most items can be freely exported from India. A few items are subject to export control in order to avoid shortages in the domestic market, to conserve national resources and to protect the environment.

Export profits are exempt from income tax. Higher royalty payments of 8% (net of taxes) are permitted on export sales as compared to 5% on domestic sales. Export commissions up to 10% are also permissible.

Inputs required to be imported for export production are exempted from the basic customs duty. Export Oriented Units (EOUs) and Export Processing Zones (EPZs) enjoy special incentives such as duty free import of capital goods and raw materials for the purpose of export production.

A Brand Equity Fund has been set up to popularize high quality India brands in the world market. The corpus of the fund of Rs 5 billion (US $156 million) will receive equal contributions from the government and industry.

Exim Policy 1997 - 2002

The new 5-year Export and Import for the period 1997-2002 aims at giving a major thrust to acceleration of India's exports through restructuring and revamping of various export promotion schemes and wide ranging measures for simplification and streamling of  procedures with a view to making them more transparent and easy to administer.

The policy aims at consolidating the achievement made possible during the preceeding 5-year Exim Policy for 1992-97, while continuing the process of trade reforms and trade liberlisation with a view to achieving higher rate of export growth. The new Exim Policy focused on the need to allow exporters to concentrate on the manufacture and marketing of their products globally in an environment unhindered by discreationary controls and pro cedural bottlenecks. The policy aims at enabling the industry to enhance its competitiveness in the global markets and to achieve its full potential in the areas of its strength. Its objectives are : Accelerating the country's transition to a globally oriented
vibrant economy in order to derive maximum benefits from expanding global market opportunities, Stimulating sustained economic growth by providing access to essential Raw Materials, Intermediates, Components, Consumables and Capital Goods, derived from augmenting production, Enhancing the technological strength and efficiency of Indian agriculture, industry and services, thereby improving their competitiveness while generating new employment opportunities.

Encouraging the attainment of internationally accepted standards of quality and providing consumers with good quality products at reasonable prices.